Newton (Mass.) Retirement System issued an RFP for an active international core equities manager to run $20 million as a possible replacement for Putnam, said Rafiq Ghazarian, the Segal Advisors consultant assisting the $204 million plan. The search was prompted by staff turnover at Putnam after lawsuits were filed against the firm, Mr. Ghazarian said. "We have recommended a 'wait-and-see' attitude' to see what will happen," Mr. Ghazarian said, noting Putnam has not been terminated and can rebid. Proposals are due Nov. 25. RFPs are available from Rosemary Guillette at [email protected]
Separately, St. Olaf College, Northfield, Minn., terminated Putnam, which handled $22 million in active international equity for the $161 million endowment, said Mark R. Gelle, assistant treasurer. The termination was based on recent accusations of late trading against Putnam, Mr. Gelle said. "We are disappointed about the decision, but hope that we will have the opportunity to manage investments for them again in the future," Laura McNamara, Putnam spokeswoman, said in a statement.
The endowment's investment subcommittee will review a shortlist of active international equity managers to select a replacement for Putnam at a Nov. 13 meeting, Mr. Gelle said.